Home > Experts > Corporate Law > IS THERE IS ANY NEED OF PASSING BOARD RESOLUTION


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


IS THERE IS ANY NEED OF PASSING BOARD RESOLUTION (Corporate Law)

Report Abuse
This query is : Resolved


( Author )
25 December 2010

SIR,
I HAVE A PVT. LTD CO. WHO HAS RECEIVED SHARE APPLICATION MONEY OF RS. 120000/- FORM 3 DIRECTORS RS.40000/- EACH IN CASH.
AND CO. DOES NOT PASS ANY RESOLUTION FOR RECEIPT OF SUCH MONEY.

PLEASE TELL ME THAT IS THERE IS ANY NEED TO PASS BOARD RESOLUTION FOR RECEIPT OF SUCH APPLICATION MONEY FROM DIRECTORS IN CASH.

ITSSSSS VERY URGENT..........!


Ankur Garg

( Expert )
25 December 2010

Hello,

Companies Act is silent about the treatment of share application money.

In case the Company has accepted the Share Application Money you may do one simple thing. You may record the above transaction i.e. receipt of share application money and assurance given to proposed allottee in the board meeting minutes.

In other words simple noting of such receipt in the board minutes would be enough. No need to take any kind of approval from any concerned authorities.

Regarding time limit to convert such share application money into capital the law is silent. However as per practice (Based on FEMA rules for foreign money) allot share with 6 months of the receipt of application money.

Further collect the share application form from the proposed allottee for your record. You may download the sample share application from the link mentioned below:

http://www.caclubindia.com/share_files/files_display.asp?files_id=11908

Regards


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :












submit










Quick Links





back to the top